A Little Known Gambling Play
There are many angles to play the rise of gambling worldwide. Most investors focus on the casino operators such as Wynn Resorts (NASDAQ: WYNN) or gaming manufacturers like International Game Technology (NYSE: IGT). However, there maybe another way to participate in worldwide casino growth; cash.
Most gamblers leave a casino with not much money in their pockets, but what most investors fail to realize that most enter the casinos in much the same fashion. Anywhere from 50 to 90 percent of a casino’s take stems from cash obtained on the premises. Getting that cash into gamblers hands is the job of Global Cash Access Holdings (NYSE: GCA).
Through its network of 3 in1 ATM’s, which allow users turn declined debit card transaction into credit ones, the company dispensed nearly $21 billion in cash in 2009. The company is also one of the leading credit bureaus for the industry, creating a FICO like score for gamblers, which casino’s use to help extend credit. Investors wanting to play the growth of casinos could add Global Cash to a portfolio as a nice small cap play.
